Negative Impact Of Corruption Research Articles

The Contribution of the European Court of Human Rights to the Construction of a Corruption-Free Society

Abstract Corruption is a serious threat to the stability and security of societies, undermining institutions and democratic values, ethical principles, and justice, as well as sustainable development and the rule of law. It manifests itself in many ways and in a multitude of contexts, affecting almost all human rights, including economic and social rights (i.e., the right to work, the right to food, the right to housing, the right to health, the right to education, the right to public services, the right to development), as well as civil and political rights (i.e., the right to equality and non-discrimination, the right to political participation, the right to an effective remedy and to a fair trial). In this perspective, starting from an examination of the direct and negative impact of corruption on the enjoyment of human rights (Section 1), the analysis that follows focuses on the obligations of States to respect, promote, and above all, protect human rights (i.e., take all necessary measures to ensure their full enjoyment) (Section 2), traces the ECtHR’s most incisive pronouncements on violations of individual guarantees in the context of corruption (Section 3), and highlights the crucial role of the Court’s case law in defining more effective, preventive, and punitive measures against corruption (Section 4).

Measuring the effects of electronic government services and corrupt practices on information exchange: a comparison of public and private hospitals

PurposeHealth Information Exchange (HIE) is essential for the efficient and cost-effective delivery of health-care services. The provider’s administrative structure and external environment can substantially influence adopting technologies involving inter-organizational linkages, such as HIE. Using the theoretical lens of institutional theory, this study aims to compare how public and private hospitals' engagement in HIE is influenced by corruption and government online services or e-government usage.Design/methodology/approachThe study uses the positivist research design of secondary data analysis to test the six hypotheses proposed. Data from multiple third-party reliable sources, including the European Commission and World Bank, are combined into the final dataset consisting of observations from 1,442 hospitals across 30 countries in Europe. A multilevel modeling approach is used to associate country and hospital-level variables and test the hypothesis.FindingsThe study finds that, on average, a 10% increase in corruption leads to a 6.3% decrease, while a 10% increase in e-government leads to a 7% increase in the probability of HIE engagement for a hospital. The negative impact of corruption on average is 18% more in public than private hospitals, while the positive impact of e-government is 75% stronger in public in comparison to private hospitals. The study also finds that HIE engagements in health systems with predominantly public hospitals are more sensitive to corruption and e-government.Originality/valueTo the best of the authors’ knowledge, the study is one of the first to use the institutional view to test the influence of government actions and public providers' concentration on HIE engagement. The comparison of public and private institutions enriches our understanding of promoters and inhibitors of HIE.

Comparative Study of the Impact of Corruption on the Human Development Index

The problem of corruption in state bodies remains one of the main ones regarding qualitative economic development. The reason for this is the significant negative impact of this phenomenon on the standard of living of citizens and the efficiency of the functioning of state bodies. However, the strength of such interaction may differ depending on the country and how conscientiously the employees of its state apparatus carry out their work. Thus, it is relevant to analyze the impact of corruption on the standard of living of citizens, which in the framework of this study is defined as an index of human development. Many scientific methods were used during the work: analysis, deduction, and abstraction. As part of the study, the negative impact of corruption on some important social spheres, such as healthcare, education, and others, as well as on the income level of citizens and the development of the shadow economy, was analyzed. The impact of corruption on the indicators of the human development index and its individual components was assessed. Subsequently, it was shown that there is indeed a certain interaction between these variables, which once again speaks of the role of the fight against corruption in the country. Also, having assessed the state of combating the unfair behavior of civil servants in Kazakhstan, recommendations were prepared to counter this phenomenon. This work brings new knowledge in terms of assessing the impact of corruption on the development of the country and its citizens.

Corruption, political connection, and firm investments

I provide evidence that U.S. firms in more corrupt areas have lower investment expenditure than firms in less corrupt areas. A one standard deviation increase in corruption rate is associated with a 8.6% decline in a firm’s investment from the median. Firms with a high degree of geographical concentration cut investment spending more aggressively in response to corruption. Notably, firms primarily scale down on research and development. I also find that political connections insulate firms from the negative impact of corruption. The investment reduction effect is almost non-existent in firms well connected to politicians. This finding further affirms the advantage that politically connected firms enjoy over non-connected firms.

Anti-corruption policy of Ukraine in the context of war

The article examines the peculiarities of national anti-corruption policy in the light of European integration processes, civil society development and full-scale war.
 It is noted that the negative impact of corruption is additionally manifested in the decline of the authority of the country, state authorities, moral values ​in society, it causes the penetration of a criminal component into state-management and social relations, as well as undermines the economic and political foundations of the state, blocks the inflow of foreign investments, which leads to shadowing of the economy.
 The concept of the index of perception of corruption and anti-corruption policy, its normative basis and institutional support are characterized. Comprehensive approaches to the development and implementation of changes to reduce the level of corruption in certain spheres of the state's life have been analyzed. The key shortcomings of the modern anti-corruption policy are outlined.It is substantiated that the important conditions for preserving the sovereignty of the state and restoring its territorial integrity are the proper armed repulsion of the invaders' encroachments, the provision of socio-economic foundations and political stability in the country. In these conditions, combating corruption continues to be a priority area of ​state policy and requires the state leadership to implement further radical anti-corruption measures in the state administration system. It has been proven that, along with repelling military aggression, the fight against corruption should be an equally urgent priority for all state authorities todayIt is emphasized that the issue of preventing and countering corruption, the formation of anti-corruption state policy does not lose its relevance neither during martial law nor in the post-war period. It was noted that Ukraine shows significant changes in this regard, despite the fact that almost all the resources of the state and society are now directed to the protection against unprovoked military aggression of the Russian Federation.Ways of improving the methodology of development and implementation of anti-corruption policy, taking into account the corruption perception index, are proposed.

The impact of public expenditure on economic growth in Vietnamese localities: Research in the context of the impact of Covid-19

The article studies the impact of provincial public expenditure on economic growth in Vietnamese localities in the context of the impact of Covid-19, with balance panel data of 63 provinces and cities collected in the period 2012 - 2021 (Covid-19 pandemic from 2020 to 2021). The results of the model estimate using the least feasible squared method show that public spending positively impacts economic growth in localities even in the context of the impact of Covid-19. The presence of Covid-19 has had a strong negative effect on economic growth in localities considering both the number of infections and the period of infection and has significantly reduced the impact of public expenditure, extra-budget investment, and human resources. This result is consistent with the actual situation in Vietnam during the Covid-19 pandemic. An interesting finding of the study is that the negative impact of corruption on local economic growth has decreased significantly in the context of the impact of Covid-19. Therefore, improving the efficiency of public expenditure, attracting extra-budget investment, and promoting the efficiency of local labor resources are still important to contribute to promoting economic growth in Vietnamese localities.

К проблеме деструктивного воздействия коррупции на институты современного общества

This article is devoted to the study of the problem of corruption in modern society and the destructive influence that it has on all institutions of modern society. The article also explores the hidden nature of corruption interaction, as well as the most notable cases of anti-corruption and law enforcement activities in various countries of the world. The article touches upon the negative impact of corruption in the world on the effectiveness of the implementation of the Sustainable Development Goals.

The effect of corruption on human development in selected Islamic countries (an approach from the ARDL panel model)

Introduction: Corruption, as a deterrent to equitable development, is recognized as a contentious issue in the field of institutional quality and political economy. The literature on the impact of corruption on economic growth often addresses the issue that corruption has had a negative impact on economic growth and development. But some economists believe that corruption has had a positive effect on economic growth. The purpose of this study is to investigate the impact of corruption on human development in the long and short term for developing Islamic countries during the period of 2000 to 2017. Method: The method of this study is the use of panel statistical data based on the Pooled Mean Group (PMG) model. The corruption index used in this study is the corruption control index introduced by the World Bank. The control variables in this study include trade openness and economic growth. Finding: The results showed that in the long run, the corruption reduction index has improved the human development index. But in the short run, this index has had a positive effect on the human development index in the selected countries. Discussion: The negative impact of corruption on human development shows that corruption hinders the improvement of human development indicators, which are education, health, and economic growth in the long run. Therefore, policymakers must adopt the necessary policies to reduce corruption in order to improve the status of the human development index and therefore human welfare.

Corruption and International Trade: A Re-assessment with Intra-National Flows

Abstract This study re-examines the impact of corruption on international trade accounting for both inter- and intra-national flows in line with the latest advances in the gravity equation literature. Using a wide sample of countries for the period 1995–2017, our results show that the non-inclusion of internal trade flows drastically biases the estimations. Additionally, we find that the negative impact of corruption on trade is reduced, ceteris paribus, in poorer countries. We also find non-linearities, more corrupt countries present a more harmful impact of corruption on trade. Moreover, we perform a general equilibrium analysis to investigate the impact of a given reduction in perceived corruption on a selected group of countries’ economic growth and prices. We find that these effects are far from being negligible, especially when there is a “synchronized” reduction in corruption in most corrupt countries.

Regional Specificity of the Personality of the Bribe-Giver: the Experience of Sociological Analysis

Introduction. A sociological analysis of the personality of the bribe-giver is given based on the study of data on the Republic of Mordovia. The relevance of the issue is determined by the following factors: the strengthening of the negative impact of corruption on all aspects of society and the state; the social mimicry of corruption, the stability of ideas in society about the ambivalence of corruption. The purpose of the article is to highlight the regional specifics of the identity of the bribe-giver.Methodology and sources. The neoclassical paradigm of the study of corruption links corruption phenomena with the decomposition of the state apparatus and the erosion of the moral foundations of society. In this vein, the authors explore the dual nature of corruption, that is, its conditionality by both the government and society. In the context of Durkheim's anomie theory, the motivational complex of bribe-takers is analyzed.Results and discussion. The objectives of the study required a mass survey (n = 400, ∆ ±5%), which represented the composition of the population of the region by gender, age, type of activity and type of locality. Within the framework of the study, a qualitative and quantitative description of the corrupt behavior of the bribe-giver was carried out, his motivational complex was revealed, and his subjective assessment of the dynamics of corruption and the effectiveness of anti-corruption policy was revealed. The following regional features of the personality of the bribe-giver are revealed: the age of the highest economic and social lability, the average level of corruption activity, the low size of the average amount of a bribe, acting as the initiator of a corrupt bribe, the perception of a bribe as a rational means of solving problems, pronounced negativism in assessing the authorities.Conclusion. Participation in corrupt transactions imposes a more or less pronounced imprint on the personality of the bribe-giver, which consists in the deformation of the practices of relations with representatives of state bodies, the gradual loss of immunity to criminal or semi-criminal activities, the partial degradation of socially significant moral values, the transformation of corrupt practices from a social anomie to a social norm.

Firm‐level aggregate corruption and competition: The role of telecommunications infrastructure

AbstractThis study examines the relationship between competition and corruption in the presence of enhanced telecommunications infrastructure. We use firm‐level aggregate data provided by the World Bank Enterprise Surveys and collected between 2006 and 2018. Our fixed‐effects results are two‐fold. First, the number of competing firms increases corruption in developing countries. This result is consistent with the previous literature on the competition‐corruption nexus. Second, corruption decreases as the number of competing firms increases in countries with better information and communication technology endowment. Our results are robust to controlling for endogeneity via the two‐step, feasible efficient generalized method of moments and suggest that e‐governance may help to reduce firm‐level corruption in a competitive environment. Given the negative impact of corruption on investment and growth, developing countries should aim at adopting and using more telecommunications infrastructure, along with the traditional approaches of combatting corruption that are based on enforcing rules of law or building stronger institutions, just to name a few, to boost investment and economic growth.

Corruption and Economic Growth in Kenya: A County-level Analysis

While there's an outsized consensus within the empirical literature on the negative impact of corruption on the economic process, some studies still argue that corruption could also be economically justified. There is, however, little empirical evidence to validate the impact of corruption on economic growth within the devolved units. The effect of the corruption rate on economic activities is examined using ordinary least squares regression analysis and Kenya county-level data. The results of this study revealed that there exists a negative independent relationship between corruption and county per-capita income growth. Arising from the study findings, this study submits that the county authorities and policymakers must put in situ policies that may eradicate the grounds for bribe-taking in counties to stimulate economic growth. Keywords: corruption, economic growth, fiscal decentralization, devolution, macroeconomic DOI: 10.7176/JESD/12-18-02 Publication date: September 30 th 2021

Impact of corruption on bank soundness: the moderating impact of Shari’ah supervision

PurposeThis study aims to examine whether the soundness of Islamic banks is differently affected by corruption compared to conventional counterparts. Moreover, the Shari’ah supervisory board (SSB), as a cornerstone of Islamic banking and representing a multi-layer corporate governance model, is expected to moderate the influence of corruption on soundness for Islamic banks.Design/methodology/approachThis study considers a unique sample of 1,528 observations on 71 Islamic banks and 120 conventional banks operating in 11 emerging and developing Muslim countries over the 2010–2017 period. This study uses generalized least squares regression model and the coefficients are estimated by using random-effects estimator. In addition, to overcome a potential endogeneity concern for corruption and bank stability relationship, this study uses Two-Stage Least Squares regression instrumental variable estimator.FindingsThe authors find consistent evidence that higher levels of corruption adversely impact the soundness for conventional banks, in favor of the sand the wheel hypothesis in the corruption–development nexus. However, as expected, this study finds a less negative impact of corruption on soundness of Islamic banks. Moreover, SSB moderates the relationship between corruption and soundness of Islamic banks. The findings are robust to a battery of alternative checks.Research limitations/implicationsFindings of the paper regarding the detrimental impact of corruption on bank soundness justify the urgency of the anti-corruption campaigns in these countries, particularly for conventional banks. Moreover, the findings provide support for the positive contribution of SSBs to overcome the adverse effect of corruption on soundness of Islamic banks and thereby underscoring the need for enforcement and regulatory mechanism for SSBs to be more effective.Originality/valueTo the best of the authors’ knowledge, this is the first study to examine the moderating impact of Shari’ah supervision on the relationship between corruption and soundness of Islamic banks.

Does corruption boost or harm firms’ performance in developing and emerging economies? A firm‐level study

AbstractIn the last decade, a growing number of studies have addressed the ongoing debate about whether corruption “sands” or “greases” the wheels of business at the firm level. This study revisits this debate and proposes a comprehensive theoretical framework to test whether corruption harms or boosts firm performance, as well as the extent to which this relationship is mediated by the countries’ institutional settings, the size and strategic behaviour of the firms, and market competition. Based on a sample of 21,250 firms located in 117 emerging and developing countries, and resorting to instrumental variable (IV) estimations, three main results were found: (a) regardless of the proxy used for corruption and firm performance, the former clearly harms the latter; (b) corruption “greases the wheels” of business for African firms but it “sands the wheels” for firms in Latin America, the Caribbean, Eastern Europe, Central Asia, and Southern Asia; and (c) the negative impact of corruption on performance is mitigated for larger and exporting firms.

Effect of corruption on firm level innovation: Evidence from Pakistan

Corruption is a widespread phenomenon in majority of the developing countries. However, literature evident both positive and negative impact of corruption in economises at macro level. At the micro level the studies rarely exist explaining this phenomenon. This paper empirically investigates the micro level impact of corruption on firms’ innovation. For the purpose, we use “percent of firms expected to give gifts to public officials (to get things done)” as a proxy for corruption, and innovation is measured by “firms that introduce new or significantly improved products or services over the last three years”. The results explain that corruption augments firms’ innovation, that is, “grease the wheels” exists in the case of Pakistan.

The Consequences of Shadow Economy and Corruption on Tax Revenue Performance in Nigeria

Abstract Shadow economy and corruption are the two harmful activities that do not work in the favour of tax revenue performance. As a result it renders an effective government incapacitated and unable to carry out its social responsibilities. This study considers the effect of the informal economy and graft on tax revenue performance in Nigeria using secondary data that cover a period from 1996 to 2018. This period has been covered by the corruption perception index captured by the Transparency International for Nigeria. Despite the theoretical approaches available in measuring the size of the shadow economy, the ordinary least squares technique is specifically used to perform the multi-regression analysis to arrive at the empirical results which indicate that both the shadow economy and corruption have negative influences on tax revenue performance in Nigeria, although the negative impact of corruption on tax revenue is more robust and significant. Thus, the study suggests among others that the government should step up action against corruption and also address the root causes of shadow economy in order to make the participants of the informal sector willing to formalize their businesses and voluntarily comply with tax payment obligations.

Corruption as a Threat to the Economic Security of the Country

The article analyzes the current level of corruption as a threat to Russia’s economic security. By the method of generalization of the provisions of the legislation, the features of corruption in Russia in the context of economic security are studied, the characteristic of corruption crimes is given. The dynamics of the corruption perception Index in the Russian Federation for 2015-2017 published by Transparency International is studied. Economic and statistical methods of data processing and analysis studied the indicators of corruption in Russia in 2015-2017 on the basis of official data. The value of damage to the country’s economy from corruption is revealed. The dynamics and structure of penalties for corruption crimes in Russia in 2015-2017 are studied on the basis of the generalization of data of the General Prosecutor’s office and Judicial Department at the Supreme court of Russia. Based on the calculation and analysis of the economic security indicators of the Russian Federation for 2015-2017, the impact of corruption on the economic security of the country is assessed. The level of economic security in the country under the influence of the mechanism of corruption is revealed. Methods of positive and normative approaches, abstract-logical and systemic approaches have revealed the directions of the negative impact of corruption on the economic security of the country. The mechanism of influence of corruption on economic security of Russia is presented by graphic method. The social danger of corruption in Russia is that it has a destructive, destabilizing effect on all state institutions and impedes the progressive development of the global legal order. The public danger of corruption is also linked to its latent nature. Corruption has a significant scale that threatens the economic security of Russia, but its real level is almost impossible to establish. Data on corruption in cases registered in the Prosecutor’s office and the judiciary, as well as international expert agencies, allow us to state a high level of corruption in Russia.

The Anti-corruption Institutions in South Africa: A Panacea to Governance Ills?

The purpose of this article is to assess the role played by the South African anti-corruption institutions in addressing corruption in government departments. The negative impact of corruption on the effectiveness and efficiency of the service delivery by government departments necessitates an examination of the role of the anti-corruption institutions. For the purposes of this article, a review of scholarly published articles, newspaper articles, case law and annual reports of the anti-corruption institutions in South Africa was undertaken. With regard to the anti-corruption institutions, it is has not yet been established whether they are operating free of political interference in South Africa. This article contends that the anti-corruption institutions should be sufficiently resourced and funded by the government to enable them to deal effectively with the corrupt activities that pervade government departments. Moreover, the anti-corruption institutions should be able to perform their functions without any political interference that could possibly influence their proper functioning negatively.

Corruption, political discretion and entrepreneurship

PurposeWhile common sense suggests that corruption will likely have a negative impact on the economy as it raises the cost of doing business, research on the topic showed inconsistent results (positive, negative and neutral). This paper aims to verify whether corruption has a “grease” or “sand” effect on the wheels of entrepreneurial rates and under which conditions corruption will have stronger or weaker effects.Design/methodology/approachUsing institutional theory as the basis for the hypotheses, generalized least squares estimation is conducted to empirically examine the role of corruption and political discretion in entrepreneurship in a sample of 93 countries.FindingsCountries with higher levels of corruption are associated with lower levels of firm creation. However, this negative effect of corruption is weaker when there are higher levels of political discretion.Originality/valueThis is the first evaluation of the moderating effect of political discretion on the negative impact of corruption on entrepreneurship.

Genuine Wealth Per Capita as a Measure of Sustainability and the Negative Impact of Corruption on Sustainable Growth in Sub‐Sahara Africa

AbstractIn this paper, we argue that the answer to the question of whether the impact of corruption on development is homogenous, is no. Our optimism rest on how development may be conceptualised. When equated to a narrow measure in economic‐wise which fundamentally ignores critical issues, then there is a possibility the outlook could be positive. But when conceptualised using a broad‐based approach such as sustainable development, then the outlook could be negative. We assess a panel of 22 economies in Sub‐Sahara Africa with the most recent dataset (1996–2013) from the World Bank and other reputable agencies. Our finding is quite robust. It holds in pooled OLS, Fixed effects and GMM within IV settings; and it also holds for different measures of institutions and different measures of development using growth per capita GDP and genuine wealth per capita, respectively. Taking stock of major policy blue‐prints of selected countries in the region on the fight against corruption, we are able to point out that institutions play important role in insulating citizens against the devastation caused by corruption. Overall, through this comparison, we are able to signal that both incidental and systematic corruption poses a long‐term threat to sustainable development.